Correlation Between Ekinops SA and Etablissements Maurel
Can any of the company-specific risk be diversified away by investing in both Ekinops SA and Etablissements Maurel at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ekinops SA and Etablissements Maurel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekinops SA and Etablissements Maurel et, you can compare the effects of market volatilities on Ekinops SA and Etablissements Maurel and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ekinops SA with a short position of Etablissements Maurel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekinops SA and Etablissements Maurel.
Diversification Opportunities for Ekinops SA and Etablissements Maurel
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ekinops and Etablissements is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Ekinops SA and Etablissements Maurel et in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Etablissements Maurel and Ekinops SA is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ekinops SA are associated (or correlated) with Etablissements Maurel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Etablissements Maurel has no effect on the direction of Ekinops SA i.e., Ekinops SA and Etablissements Maurel go up and down completely randomly.
Pair Corralation between Ekinops SA and Etablissements Maurel
Assuming the 90 days trading horizon Ekinops SA is expected to under-perform the Etablissements Maurel. In addition to that, Ekinops SA is 1.64 times more volatile than Etablissements Maurel et. It trades about -0.04 of its total potential returns per unit of risk. Etablissements Maurel et is currently generating about -0.06 per unit of volatility. If you would invest 595.00 in Etablissements Maurel et on September 2, 2024 and sell it today you would lose (94.00) from holding Etablissements Maurel et or give up 15.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekinops SA vs. Etablissements Maurel et
Performance |
| Timeline |
| Ekinops SA |
| Etablissements Maurel |
Ekinops SA and Etablissements Maurel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekinops SA and Etablissements Maurel
The main advantage of trading using opposite Ekinops SA and Etablissements Maurel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekinops SA position performs unexpectedly, Etablissements Maurel can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Etablissements Maurel will offset losses from the drop in Etablissements Maurel's long position.| Ekinops SA vs. Claranova SE | Ekinops SA vs. Derichebourg | Ekinops SA vs. Mersen SA | Ekinops SA vs. BigBen Interactive |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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